PBR Not Yet Ready for Prime Time
Although Petro Brazil (PBR) climbed 39% from its July 8-year low at 12.03 to its Sept high at 16.67, let’s notice that it peaked right at key resistance along both its 2-year trendline and its declining 200-day EMA.
PBR must hurdle that resistance plateau to get any sustained upside traction.
In the meantime, PBR should find support in the 15.00-14.80 area.
A break of 14.80/70 will argue for additional weakness into the 14.00-13.80 area.
Right now, my sense is the PBR is in the painstaking process of putting in a bottom in the aftermath of a 2-year bear phase.
Barring a sustained thrust above 16.70, the surprises likely will continue to be the downside during the basing process.